Administration

FICA Alternative Plan

The Omnibus Budget Reconciliation Act of 1990 (OBRA 90) introduced into law Internal Revenue Code Section 3121(b)(7)(F). As a result, you, as a part-time, seasonal or temporary employee of a government employer, may deposit money into a private retirement plan, instead of Social Security. Thus you are not covered under Social Security.

  • Under the 401(a) FICA Alternative Plan, you contribute 7.5% of your compensation to an account in your name.
  • Any benefits which you have earned under any other retirement plan (as well as social security benefits) will not be reduced by participating in this plan.
  • If you leave a position covered by this plan for any reason before retirement, you can withdraw the balance of your account, or continue to save the funds for retirement.
  • You contribute before tax withholding is calculated, which reduces your income taxes.
  • You pay no taxes on your contribution or the earnings in your account until withdrawal.
  • Investments are controlled by the participant. You may change the investment whenever you like by obtaining a new investment election form from BENCOR Administrative Services byphoning 1-888-258-3422 or visit www.bencor.com
  • There are no administrative fees for this plan.
  • Withdrawals from the plan may be made at the following times:
         1. Termination of employment
         2. Retirement
         3. Age 59 1/2
         4. After age 70 1/2 or retirement, if later, when the IRS requires that minimum distributions be made to the participant each year.
         5. Your total disability
         6. Your death
  • To request a withdrawal, send a written request to BENCOR Administrative Services. Include your name, mailing address, Social Security number, account number and the name of your plan sponsor.
         BENCOR Administrative Services
         8488 Shepherd Farm Drive
         West Chester, Ohio 45069
          1-888-258-3422

 

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